FCRA Statute of Limitation Extension Affects Loans After March 31
WASHINGTON - Mortgage loans originated after March 31, 2004 are subject to a new law that became effective on that date and which extends the statute of limitations under which a plaintiff can bring an action. The new law was one of several provisions to the Fair and Accurate Credit Transactions (FACT) Act that was passed at the end of 2003 and reauthorized the preemption provisions of the Fair Credit Reporting Act and added several additional requirements applicable to lenders. Prior to the extension, plaintiffs could bring an action two years from the date on which the violation occurred. The new law extends the statute of limitations to five years from the date on which the violation occurred, or two years from the date of discovery of the violation, whichever is earlier.